1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lunna [17]
3 years ago
7

A 12-month insurance policy was purchased on Dec. 1 for $3,600 and the Prepaid insurance account was increased for the payment.

14- Demonstrate the required adjusting journal entry on Dec. 31 by selecting from the choices below.
a. Prepaid insurance would be credited for $3,600.
b. Cash would be credited for $3,600.
c. Insurance expense would be debited for $300.
d. Insurance expense would be debited for $3,600.
Business
1 answer:
miss Akunina [59]3 years ago
5 0

Answer:

The correct answer is C

Explanation:

The insurance policy was purchased on Dec 1 worth $3,600, so on Dec 31, the entry to be recorded is as follows:

Insurance expense A/c............................Dr    $300

         Prepaid insurance A/c.........................Cr    $300

When the asset is charged on to the expense account then the expense account of the insurance is debited against the account of the prepaid insurance.

Working Note:

Amount = Insurance amount / Number of months

= $3,600 / 12

=$300

You might be interested in
Data from a scientific investigation should be presented in what format?
katen-ka-za [31]
I depends on the type of data some have their own data sheet and some must be made but I would use a graph or a c&e sheet
6 0
3 years ago
The 2005 boston globe article discussing ticket scalping points out that the price people will pay for tickets will rise when se
natta225 [31]

Answer: c). supply is limited and demand is not limited

Explanation: When supply of a good is limited while its demand is not limited as rise in the price of the good, will not lead to a substantial decline in the quantity. The 2005 boston globe article discussing ticket scalping points out that the price people will pay for tickets will rise when supply is limited and demand is not limited. This limited supply will induce consumers to compete among themselves and pay a higher price in order to get the limited supply.

4 0
3 years ago
A ———- relationship would include your co-workers and friends?
yan [13]

A social relationship would include your co-workers and friends?

3 0
3 years ago
The amount debited to wages expense when a payroll is recorded is the
kramer

I would say wages expense should be placed under labour expenses and it is important to remember that though labour is an expense it is also the main source of revenue since it it the workers ie the ones who run the machines that really create wealth.

3 0
3 years ago
ichael McNamee is the proprietor of a property management​ company, Apartment​ Exchange, near the campus of Penscola State Colle
sertanlavr [38]

Answer:

Option "A" is the correct answer to the following statement.

Explanation:

Business Entity Assumption state that businessman and business are a different entity.

Under the Business Entity Assumption, Personal assets and Company assets are always different, Personal assets will never show in the Company's balance sheet.

In the case of Michel McNamee his bank account and personal home in not recorded in the company's book.

5 0
3 years ago
Other questions:
  • Jeff brooks has recently moved into an apartment and has discovered that the previous tenant forgot to turn off the cable tv ser
    13·1 answer
  • __________ is an example of a public source of information consulted during an external search as part of the purchase decision
    6·2 answers
  • At Sunland Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciat
    6·1 answer
  • Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair
    12·1 answer
  • Chung manages his employees by carefully monitoring their production, comparing what they do to predicted schedules and desired
    11·1 answer
  • A few years ago, Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoy
    7·1 answer
  • Cross Country Movers has just gone public. Under a firm commitment agreement, the firm received $19.84 for each of the 2.12 mill
    10·1 answer
  • FIFO reports higher gross profit and net income than the LIFO method when a.prices are increasing b.prices remain stable c.price
    10·1 answer
  • When spoiled goods have a disposal​ value, the net cost of the spoilage is computed by​ ________. A. adding the costs to complet
    11·1 answer
  • According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!